How Much Home Can You Afford in Toronto?

Toronto is the deepest and most expensive housing market in Canada, and the cost most first-time buyers underestimate is closing tax. Toronto is the only city in Ontario that levies a municipal land transfer tax on top of the provincial one, so a buyer here pays roughly double the LTT of someone purchasing in Mississauga or Ottawa. The upside is the rebate: first-time buyers can claim up to $4,475 provincially and another $4,475 from the city, for a combined $8,475 — enough to fully erase the tax on a starter condo priced under about $400,000.

Detached homes in the core routinely clear seven figures, which pushes most first-time buyers toward condos in Scarborough, North York and Etobicoke, or out to the 905 suburbs where prices ease. Because prices are so high relative to income, virtually every Toronto purchase is governed by the federal stress test — you must qualify at roughly two percentage points above your contract rate. Run your real income and down payment through the calculator above before you start shopping; it will tell you quickly whether a downtown condo or a larger home further out is the realistic target.